The bulls piled into the New York Times Co. early yesterday, looking for the media stock to rally.
OptionMonster’s tracking systems detected activity in the October 9 and 10 calls. The October 9s traded for $0.95, with more than 1,200 changing hands, while the October 10s fetched $0.30. Volumes were well above the open interest in each strike, indicating new positions.
Those contracts lock in the price investors must pay for New York Times Co. stock and will generate some nice leverage in the event of a rally. But these options will lose value if the stock doesn’t move.
New York Times shares rose 0.1 percent yesterday to close at $9.60. Early in the session, the company announced the planned sale of its remaining interest in online job-search site Indeed.com, which is being acquired by Japanese executive-search firm Recruit for an undisclosed amount.
More than 2,400 calls traded against just 241 puts in the name, a reflection of the session’s bullish sentiment.
—By CNBC Contributor Pete Najarian
Additional News: New York Times Cuts Pensions for Ex-Employees
Additional Views: Bulls Are on a Roll With LyondellBasell: Najarian
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian has no positions in NYT.
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